REPORT: 2017 expected to be another positive year for construction
January 24, 2017.
2016 was a good year for the U.S. construction industry, according to data in Rider Levett Bucknall’s latest quarterly construction cost report
“It’s hard to predict the long-term implications from the Trump Presidency,” says Julian Anderson, President of RLB North America, “but on balance RLB expects that, barring some external shock of the economy, 2017 should be another positive year for construction generally.”
The national average increase in construction cost was approximately 1.0%
The firm’s research shows that from July 1, 2016 through October 1, 2016 Boston, Chicago, Denver, New York, Portland, San Francisco, Seattle, and Washington, D.C. all saw increases of more than 1%, while Las Vegas, Los Angeles, and Phoenix experienced increases below 1%. For the first time since 2010, Honolulu saw a slight decrease of 0.64%.
RLB’s detailed data provides a heightened perspective when viewed alongside statistics on a national scale, compiled by the U.S. Department of Commerce and other sources. Construction put-in-place ended at a seasonally-adjusted annual rate of $1.15 trillion or 0.4 percent below the revised August estimate. General unemployment was down and the AIA’s Architecture Billing Index, the leading economic indicator for non-residential activity, remained in positive territory in November.
All of this appears against a backdrop of a generally improving economy, which experienced a GDP growth of 3.2% as of the third quarter of 2016, according to the Bureau of Economic Analysis.
About the Rider Levett Bucknall Quarterly Construction Cost Report
Rider Levett Bucknall reports on the comparative costs of construction in 12 U.S. cities on a quarterly basis, indexing them to show how costs are changing in each city, as well as against the costs of the other 11 locations. Together with additional international and national cost compendia, the cost research equips clients with complete and relevant information to assist in business decisions.
With a network that covers the globe and a heritage spanning over two centuries, Rider Levett Bucknall is a leading independent organisation in cost management and quantity surveying, project management and advisory services.
Our achievements are renowned: from the early days of pioneering quantity surveying, to landmark projects such as the Sydney Opera House, HSBC Headquarters Building in Hong Kong, the 2012 London Olympic Games and CityCenter in Las Vegas.
We continue this successful legacy with our dedication to the value, quality and sustainability of the built environment. Our innovative thinking, global reach, and flawless execution push the boundaries. Taking ambitious projects from an idea to reality.